Chinese solar module producer JinkoSolar has recorded second quarter revenue of RMB2.3bn ($350.6m) a huge 151.6 per cent increase from the same period in 2010 when the figure was RMB900.6m ($150m), casting some light on an otherwise downbeat solar sector.
Revenue was also up 5.6 per cent on the first quarter of the year when it was RMB2.1bn ($323.7m). Net income for the quarter was RMB253.3m ($36.4m), a 30.1 per cent decrease on the first quarter of the year when it made RMB225.6m ($35m), but a 30.2 per cent rise on the same three months in 2010 when the figure was RMB180.7m ($28.3m).
The company's gross margin was down slightly at 25.4 per cent compared to 26.2 per cent in the first quarter and 26.9 per cent in the same period last year.
JinkoSolar expects to ship modules in the next three months of between 230MW and 250MW with revenue in the period forecasted to be in the $310m to $330m range. For the year, it predicts shipments of between 950MW and 1,000MW with an expected revenue range from $1.4bn to $1.5bn.
Kangping Chen, CEO of JinkoSolar, said, 'We are pleased to announce the second quarter results that came in ahead of our expectations, despite the challenging market environment. During the quarter, we exceeded our shipment and revenue guidance, and were able to maintain relatively healthy margins as a result of further improvements to our cost structure.
He added, 'While the solar market did face some difficulty in the second quarter, we believe that it presents a unique opportunity for us to leverage our vertically integrated business model to maintain the superior quality of our products and to ensure our cost advantages. Our geographic reach continued to expand and we have broadened our customer base while maintaining strong relationships with our existing customers in key markets such as Italy and Germany. Meanwhile, we pushed deeper into the US market where we expect to see increased growth in the near future and made significant progress in increasing sales in Spain, Portugal, Austrilia and France.'
JinkoSolar has bucked the trend that has seen most solar companies record quarterly and half-yearly results far below expected levels.